Ascena Retail Group Cuts FY15 Earnings Outlook

(RTTNews) - Ascena Retail Group, Inc. (ASNA) said Monday that its combined comparable store and ecommerce sales for the Holiday period increased 2% on a consolidated basis, with the more promotional post-Christmas period representing the majority of the comp increase.

The company also said that it was reducing its full year earnings per share guidance for the current fiscal year, ending July 25, 2015, due to lower than planned sales and elevated promotional activity at Justice during Holiday, along with a reduced trend outlook for Justice in Spring.

The company said it now expects fiscal 2015 adjusted earnings per share to be in the range of $0.70 to $0.75, compared to its prior guidance of $0.90 to $1.00.

Analysts polled by Thomson Reuters currently expect the company to earn $0.90 per share for the fiscal year 2015. Analysts' estimates typically exclude special items.

David Jaffe, President and Chief Executive Officer of Ascena Retail Group, said, "Consistent with our first quarter results, the Holiday season was mixed across our portfolio. Strong performance across three of our brands was offset by softer than expected results at Lane Bryant, and continued challenges at our Justice brand. The Justice business did not accelerate as planned, which resulted in a significant increase in required markdowns to exit the Fall season at targeted inventory levels. We are also taking a more conservative outlook for Justice in the Spring."